Fremont woman charged in million-dollar fraud scheme

SAN JOSE -- A Fremont woman has been charged by a federal grand jury in connection with a $1 million fraud scheme, prosecutors said Tuesday.

The San Jose grand jury indicted 49-year-old Rosemarie Gan with five counts of wire fraud on March 13, according to Melinda Haag, United States Attorney for the Northern District of California.

According to an indictment, Gan stole more than $1 million from various investors who believed they were investing in her company, Argee's Travel and Gifts.

The investors, Haag said, expected their investments to fund the purchase of airplane tickets, and, thereafter, entitle them to commission payments following the sale of the tickets. Instead, Gan allegedly stole investors' funds and used them to pay delinquent investor commission payments and to pay for her personal living expenses.

On Monday, Gan appeared in federal court and was taken into custody pending a detention hearing which is set for Thursday morning before Magistrate Judge Paul Grewal.

If convicted, Gan could face up to 20 years in prison and a fine of $250,000 for each count of wire fraud, prosecutors said.